Serva, Inc

question 172

Multiple Choice

Serva, Inc., manufactures and sells two products: Product R4 and Product N4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

• A)$72.50 per DLH
• B)$238.33 per DLH
• C)$15.23 per DLH
• D)$48.33 per DLH

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Definitions:

Motivational Theories

Theories that explain what drives individuals to initiate, direct, and sustain behaviors to meet their needs and goals.

Theory X

A management assumption that employees are inherently lazy and will avoid work if possible, hence the need for control and direct supervision.

Theory Y

A management approach that assumes employees are inherently motivated and enjoy their job responsibilities, advocating for a participative style of management.

Generation X

The demographic cohort following the baby boomers, typically defined as individuals born from the early-to-mid 1960s to the early 1980s.